and a whole lot more…

$RTN formed Raytheon Emirates, a new subsidiary incorporated and headquartered in Abu Dhabi. Raytheon Emirates is incorporated on Al Maryah Island, and plans are underway to establish operational branches in other areas of Abu Dhabi.

$RTN expects to
see higher productivity and operational efficiencies at missiles in 2018. This is
a broad portfolio. The company has seen growth in development and classified
programs but there are slight impacts to margin. Overall, $RTN is pleased with
the portfolio and the mix of programs and is optimistic on the missiles
business growth.

$RTN's international
sales were up 8.4% in 4Q17. In early January, the company booked a new direct
commercial contract for Patriot capabilities worth over $1.5Bil. Domestic sales
were up 7.9% in 4Q17. In the missile business, bookings grew 23% YoY, mainly
driven by an increase in precision weapon contracts.

$RTN reported a
29% decrease in 4Q17 earnings. Net income attributable to Raytheon was $393MM
or $1.35 per share compared to $555MM or $1.88 per share in 4Q16. 4Q17 results included
an unfavorable $0.59 provisional tax-related impact due to the enactment of the
Tax Cuts and Jobs Act. Net sales grew 8% to $6.8Bil versus last year.

$RTN received an indefinite-delivery/indefinite-quantity contract of $641.7MM. Based on this contract, $RTN will perform ballistic missile defense system (BMDS) test related activities for multiple radar platforms and analyze sensor performance in BMDS flight tests and ground tests.

An undisclosed member of the 14-nation group that own the
combat-proven Patriot Integrated Air and Missile Defense System has awarded $RTN
a direct commercial sales contract worth more than $1.5Bil for additional
capability. The contract was awarded on Jan 4, 2018.

$RTN has completed Lot 1 production of the Small Diameter Bomb
II, a new weapon that will give fighter
pilots the ability to destroy moving targets at any time and in all-weather
conditions. The US Air Force has also contracted with $RTN to produce Lots 2
and 3. $RTN is producing SDB II bombs at its manufacturing facility in Tucson,
Arizona.

$RTN formed Raytheon Emirates, a new subsidiary incorporated and headquartered in Abu Dhabi. Raytheon Emirates is incorporated on Al Maryah Island, and plans are underway to establish operational branches in other areas of Abu Dhabi.

$RTN's subsidiary Raytheon BBN Technologies will help military
planners understand the causes for conflict using tools developed with artificial
intelligence and machine learning techniques. The work is being done under an
award from the Defense Advanced Research Projects Agency's Causal Exploration
of Complex Operational Environments program.

$RTN and Pivotal Software, Inc., announced that Raytheon has
joined the Pivotal Ready Partner Program to assist the Department of Defense to
develop software capabilities to more rapidly bring new technology to the
military. This will help the DoD migrate legacy applications to the cloud and
accelerate software development and delivery timelines.

$RTN said the US Air Force completed a series of successful
flight tests of its next-generation Military-code GPS using an $RTN receiver
onboard a B-2 Spirit at Edwards Air Force Base, California. This first ever
M-code test onboard the B-2 is an important milestone for the US Government-led
GPS Modernization effort.

$RTN said a Raytheon BBN Technologies-led team is developing
prototype cryogenic memory arrays and a scalable control architecture under an
award from the Intelligence Advanced Research Projects Activity Cryogenic Computing
Complexity program. Raytheon BBN is the prime contractor leading a team that
includes New York University, among others.

The government of Romania signed an agreement to purchase $RTN’s
Patriot Integrated Air and Missile Defense system from the US Army. Romania
will receive the Patriot Configuration 3 , the most advanced configuration
available, as well as an undisclosed quantity of GEM-T and PAC-3 MSE
interceptor missiles.

$RTN said the US Air Force has accepted its GPS Operational
Control System launch and checkout system, also referred to as Block 0,
signifying the company met all contractual requirements when it delivered the
LCS to the service. The program is ready for the GPS III satellite launch in
2018. $RTN will deliver the full capability in 2021.

In 2018, $RTN expects a solid bookings year. The company believes
book-to-bill will be above 1 looking into the overall year. Currently there are
roughly 40 opportunities that are greater than $100MM, and about one-third of the
total bookings are expected to come from international customers.

$RTN sees strong demand within its Integrated Air and Missile
Defense portfolio both domestically and internationally. During 3Q17, the
company received a booking of $492MM for the development of the Redesigned Kill
Vehicle for the Ground-based Midcourse Defense System.

$RTN continues to see strong global demand for its advanced
solutions. Book-to-bill in 3Q17 was 1.11. This drove an increase in backlog of
nearly $1Bil YoY. Given this and the opportunities it sees in 4Q17, $RTN is increasing
its bookings outlook for 2017 by $500MM.

For FY17, $RTN expects net sales to be in the range of
$25.3-25.6Bil. EPS from continuing operations is expected to be $7.45-7.55. Operating
cash flow from continuing operations is expected to be $2.8-3.1Bil in 2017.